Pune Police Books BitConnect Founder Satish Kumbhani In Cryptocurrency Fraud Case

Procedure launched after Pune-based lawyer said he was able to lose nearly 220 Bitcoins worth INR 42 crore via various crypto platforms

Satish Kumbhani was charged by an US Court in February for organizing a massive crypto ponzi scheme valued at $2.4 Bn

The complainant has also named six additional persons, in addition to Kumbhani in the FIR. However, no charges have yet been made thus far.

The Pune Police on Tuesday (August 16) reportedly launched an investigation into an alleged multi-crore cryptocurrency scam and also booked cryptocurrency platform BitConnect founder Satish Kumbhani to be a witness in the case.

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The investigation began when a lawyer from Pune filed the first investigation (FIR) at the local police station saying that he was able to lose nearly 220 Bitcoins worth 42 crores through various cryptocurrency exchanges.

Naming Kumbhani along with six others for the suspected scam, the Federal Indictment said that the defendant made an investment of INR 49 Lakh in 54 Bitcoins in the year 2016 and was then allegedly promised the equivalent of 166 Bitcoins. The lawyer was also required to invest into different Ponzi schemes from 2016 to June 2021.

There have been no arrests so far been made in the investigation.

The investigation comes just six months after an US Court indicted Kumbhani for ‘ orchestrating’ an international cryptocurrency ponzi scheme valued at $2.4 Bn. He was also accused of conspiracy to commit fraud through wires, manipulation of prices and conspiracy to engage in the international crime of money laundering.

Kumbhani fooled investors into investing in his shady bitcoin platform that promised huge returns. The 36-year-old mastermind deceived investors by promoting BitConnect’s falsely proprietary software. He later took the money of new investors to pay the previous investors.

This development occurs in the midst of numerous reports are coming out concerning crypto-related scams. The report by cybersecurity firm CloudSEK on June 1 estimated Indian victims have suffered losses of as much as INR 1,000 crore in cryptocurrency scams thus far.

According to Newsexposer  research, investors across the globe lost over 72,000 Indian rupees Cr in the 12 cryptocurrency scams that were involving Indians or had founders of Indian origin.

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